CMYK
Today
Bernanke speaks Federal Reserve Chairman Ben Bernanke holds a news conference after the Fed’s meeting on interest rates. He’s planning to meet with reporters quarterly, part of a change in policy at the central bank. Today Bernanke will be answering questions about the Fed’s quarterly economic outlook and its plans for its $600 billion bond-buying program. The program, which is aimed at helping the economy, is scheduled to end in June.
Corning earnings
$25
GLW
$20.60
Corning’s first-quarter results will help $20.84 indicate how strong the demand is for 20 TVs and electronic devices. The company supplies liquid crystal display ’10 ’11 screens for TVs and computers. It 15 also makes Gorilla glass, a scratch Operating est. resistant screen for cell phones and $0.44 EPS $0.52 tablets. Financial analysts are concerned that demand for LCD TVs may 1Q ’10 1Q ’11 not be as strong as expected this Price-to-earnings ratio: 9 year. Corning has forecast that its based on past 12 months’ results glass volume rose in the JanuaryMarch period. But analysts expect it to Dividend: $0.20 Div. Yield: 1.0% Source: FactSet be flat or down in the second quarter.
Boeing’s status report Investors are likely to be more interested in Boeing's future than how it did during the first quarter. They're waiting for updates on the 787 plane that is already more than three years behind schedule. Boeing has said it will deliver the first 787 later this year. The company also has a new version of its 747 that is delayed. Boeing is also expected to discuss the problems that led to a rupture in a Southwest Airlines 737-300 fuselage on April 1.
BUSINESS
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NASDAQ 2,847.54 +21.66
B R I E F
IBM OKs stock buyback
French back Italian banker
French President Nicolas Sarkozy says his government supports Italian central banker Mario Draghi to become the new head of the European Central Bank in October. The announcement at a bilateral summit alongside Italian Prime Minister Silvio Berlusconi clears up French support for the successor for ECB chief Jean-Claude Trichet, a Frenchman whose term expires in the autumn. Many had expected a German to succeed Trichet, but Axel Weber, the outgoing head of Germany’s Bundesbank and previously considered the top candidate, has ruled himself out. That has opened the race up, with Draghi gaining favor recently, though Germany has yet to state its preferred candidate. Sarkozy said Tuesday a Draghi appointment would be a strong signal “for all those Italians who doubt Italy’s role in the EU.” Berlusconi has endorsed Draghi.
Consumer confidence up
Consumer confidence recovered somewhat in April, though the impact of a spike in gasoline prices is still evident, according to data released Tuesday by the Conference Board. The confidence index hit 65.4 in April, compared with an upwardly revised 63.8 in March. That’s still below the 72.0 reading of February, as gasoline prices nationally have approached $4 per gallon.
Depot an award semifinalist
The Tobyhanna Army Depot is among 148 semifinalists in the 2011 Secretary of Defense Employer Support Freedom Award. The Freedom Award is the department’s highest recognition given to employers for exceptional support of their employees serving in the National Guard and National Guard Reserve. The semifinalists distinguished themselves from a pool of 4,049 nominations submitted by service members in 2011. A national review board will narrow the group to 30 finalists. Then, a national selection board comprised of senior defense officials, business leaders and prior awardees will select the 15 recipients for the 2011 Freedom Award. The award recipients will be announced in early summer and honored in Washington at the 16th annual Secretary of Defense Employer Support Freedom Award Ceremony on Sept. 22.
$3.87 $4.06 07/17/08
$3.55
$2.84
$75.13
’10
’11
70 60
Operating EPS
est.
$0.70
$0.70
1Q ’10
1Q ’11
Price-to-earnings ratio:
17
based on past 12 months’ results
Dividend: $1.68 Div. Yield: 2.2% Source: FactSet
B
Aflac has new voice for mascot
S&P 1,347.24 +11.99
International Business Machines says its board has approved an $8 billion stock buyback plan and a 15 percent boost in its quarterly dividend. The dividend of 75 cents is payable June 10 to shareholders of record on May 10, and it represents the 16th straight year the technology giant is increasing its payout. IBM’s board has also authorized another $8 billion for the company’s stock buyback program. This is in addition to approximately $4.7 billion remaining at the end of March from a prior stock repurchase authorization. IBM expects to request additional share repurchase authorization at its board meeting in October.
$75.55
WEDNESDAY, APRIL 27, 2011
WALL STREET DOW 12,595.37 +115.49
BA
SECTION
timesleader.com
THE TIMES LEADER
$80
By MAE ANDERSON The Associated Press
AP PHOTO
A 2011 Ford Fiesta is displayed at the North American International Auto Show, in Detroit. Ford posted its best firstquarter profit in 13 years, as its new, more fuel-efficient vehicles reached showrooms during a surge in gasoline prices.
1Q profits thrill Ford The Associated Press
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EARBORN, Mich. — Ford posted its best first-quarter profit in 13 years, as its new, more fuelefficient vehicles reached showrooms during a surge in gasoline prices. Ford Motor Co. on Tuesday said its profit rose 22 percent to $2.6 billion, its best first-quarter performance since 1998. It was the company’s eighth straight quarterly profit in its climb back from near-bankruptcy five years ago. Ford’s quarterly revenues rose18 percent to $33.1billion, far higher than the $30.5 billion analysts were projecting. “Our team delivered a great quarter, with solid growth and improvements in all regions,” said Ford President/CEO Alan Mulally. Ford Chief Financial Officer Lewis Booth said Ford also continued to make progress paying off its debt. Ford, which took out a $23 billion loan in 2006 to revamp its operations, ended the quarter with $16.6 billion in debt. That debt level was down $2.5 billion from the start of the year. Ford now has $4.7 billion more cash than debt, an improvement of $3.3 billion from the start of this year. The March 11 earthquake in Japan, which has hurt production at Japanese automakers, has had little impact on Ford so far. Other companies also reported first quarter financials on Tuesday. Here’s a recap of some of those reports: • Valero Energy Corp. says it earned $98 million in the first quarter, reversing a yearago loss, on stronger fuel demand outside the United States and Europe. Net income was17 cents per share in the January-March quarter, compared with a loss of $113 million, or 20 cents per share, in
the same part of 2010. Revenue increased 42 percent to $26.3 billion. • US Airways, the nation’s fifth-largest airline, says its first-quarter loss more than doubled to $114 million as fuel prices rose sharply. Fuel costs jumped by $200 million, up almost 39 percent from a year earlier. US Airways is the only U.S. airline that does not hedge against fuel price spikes. It has been raising fares to make up for higher fuel prices. And the demand is there — traffic rose 4 percent from the same period last year. Those two things helped push revenue up11.7 percent to $2.96 billion. The loss amounted to 71 cents per share. It would have been 68 cents per share if not for special items. Analysts surveyed by FactSet expected a slightly larger loss of 73 cents per share on revenue of $2.94 billion. A year ago, the airline lost $45 million, or 28 cents a share. Not counting fuel, its costs for each seat flown one mile fell by1.1 percent. • The Hershey Co. reported higher firstquarter net income as its sales increased thanks to new products and heavy advertising. The chocolate-making icon credited the launch of Hershey’s Drops and Reese’s Minis, its expansion outside the U.S. and a 30 percent boost in ad spending. Net income rose to $160 million, or 70 cents a share, compared with earned $147.4 million, or 64 cents a share, in the period a year earlier. Adjusted earnings were 72 cents a share, beating analysts’ expectations for 70 cents, according to FactSet. Revenue increased11percent to $1.56 billion, beating analysts’ average forecast for $1.49 billion. • UPS is raising its full-year earnings forecast after first-quarter net income rose 66 percent as customers paid more to move packages faster. United Parcel Service Inc. said it expects to earn $4.15 to $4.40 a share this year, implying
growth of17 to 24 percent from 2010. Its previous estimate was $4.12 to $4.35 a share. The Atlanta firm earned $885 million, or 88 cents a share, up 66 percent from a year earlier, when it earned $533 million, or 53 cents a share. Revenue jumped 7 percent to $12.58 billion. FactSet says analysts expected a profit of 84 cents per share on sales $12.71 billion. • Coca-Cola Co.’s first-quarter net income climbed 18 percent as business overseas strengthened and sales of its sodas and juices rose in all regions of the world. Still, Coke’s results missed Wall Street expectations, partly because of effects from Japan’s earthquake and tsunami. Coca-Cola earned $1.9 billion, or 82 cents per share, for the period ended April1. That’s up from $1.61billion, or 69 cents per share, a year ago. Excluding 4 cents per share in restructuring charges and other items, earnings were 86 cents per share. Analysts surveyed by FactSet forecast 87 cents per share. • 3M Co. is raising its earnings expectations for the year, saying higher sales around the globe will offset the disruption to its business in Japan from the earthquake there. The Maplewood, Minn. maker of Post-Its and Scotch Tape now expects to earn between $6.27 to $6.47 per share this year, excluding an increase in pension and postretirement benefits. The company expects problems in Japan will cut earnings by about 10 to13 cents per share this year. Analysts’ average estimate is $6.24 a share, according to FactSet. 3M issued the outlook as it reported first-quarter profit that rose16 percent from a year ago. The company said it earned $1.08 billion in the first quarter, or $1.49 a share, compared with $930 million, or $1.29 a share, a year earlier. Revenue rose 15 percent to $7.31 billion. The results topped analysts’ expectations of $1.42 a share on revenue of $6.84 billion.
NEW YORK — Aflac is betting a sales manager from Minnesota has the voice to drive the name “Aflac” into the recesses of your brain and keep it there. Daniel McKeague, 36, a father of three from Hugo, Minn., beat out 12,500 other contestants to replace actor Gilbert Gottfried and become the new voice of the reinsurance company’s duck mascot. Gottfried voiced Aflac’s duck for U.S. audiences for 11 years, but was ousted in March after making insensitive remarks on Twitter about the earthquake and tsunami in Japan, which produces about 75 percent of Aflac’s revenue. Aflac soon announced a contest for Gottfried’s replacement, though the actor who has long offered a gentler interpretation of the duck for Japanese audiences will continue. McKeague recorded a 30-second clip at radio station KQRS in Minneapolis, where he works, uploaded it to Aflac’s website and later did a more formal video audition. After learning early Tuesday that he was selected for the gig, McKeague said he’s known for doing silly voices. “Whenever that ad would come on, I would imitate the duck and the kids loved it,” said McKeague, whose children are 5, 8 and 11. Aflac Chief Marketing Officer Michael Zuna says the company and its longtime advertising agency, The Kaplan Thaler Group, first winnowed the contestants to a short list of about 50, which they cut to 8 and finally to 3 — none of them celebrities. Contestants had to be able to convey a range of emotion within the single word “Aflac” and submit to an extensive background check. Executives listened to the three finalists and chose McKeague for his range and his ability to embody the duck. “We thought he was the best by far. I can’t explain to you why. It just was. Maybe it is part of the mystique of the Aflac duck” said Dan Amos, Chairman and CEO of Aflac, based in Columbus, Ga. He gets a one-year contract in the low six figures that the company said will likely be renewed for several years. The first ad with McKeague’s voice aired Tuesday evening during the new show “The Voice” on NBC. McKeague says he is thrilled — and don’t expect him to pull a “Gottfried” during his tenure. “I understand what’s at stake, it is not just getting behind a microphone and screaming ‘Aflac.’ If you’re a spokesperson you have responsibilities.”
Sony unveils tablet computer to take on Apple By YURI KAGEYAMA AP Business Writer
TOKYO — Sony is planning a tablet computer with a touch panel similar to Apple’s iPad for later this year that the Japanese manufacturer promises will make the best of its gadgetry and entertainment strengths. The product, code-named S1, shown Tuesday in Tokyo, comes with a 9.4-inch display for enjoying online content, such as movies, music, video games and electronics books, and for online connections, including e-mail and social networking. Sony, which boasts electron-
ics as well as entertainment divisions, also showed S2, a smaller mobile device with two 5.5 inch displays that can be folded like a book. It did not give prices. But Sony Corp. Senior Vice President Kunimasa Suzuki said they would be competitive when they go on sale worldwide in about September. Both run Google’s Android 3.0 operating system. The announcement of Sony’s key net-linking offerings comes as it tries to fix the outage of its PlayStation Network, which offers games and music online. It is unclear when that can start running again. Sony has
blamed the problem on an “external intrusion” and has acknowledged it would have to rebuild its system to add security measures and strengthen its infrastructure. Suzuki said both of the latest tablets feature Sony’s “saku saku,” or nifty, technology that allows for smooth and quick access to online content and for getting browsers working almost instantly after a touch. “We offer what is uniquely Sony,” Suzuki said after demonstrating how the S1 was deAP PHOTO signed with a tapered width for Sony Corp.’s prototype tablets code-named, S1, left, and S2, carrying around “like a magaare held by models in Tokyo. zine.”